Reference Budgets

Reference Budgets

Reference budgets are priced baskets of goods and services that are needed for households in given countries, regions or cities to achieve a given standard of living.

These budgets are usually developed for a limited number of model families taking account of:

the household composition and circumstances;

individual needs and characteristics such as the situation as regards housing, health and individual competences;

natural and institutional characteristics, especially the availability and accessibility of public goods and services.

Reference budgets developed in various countries across Europe in the last few years are based on survey or other statistical data, international regulations and guidelines, expert knowledge, focus groups (i.e. a participatory approach) or a combination of these.